We’ve previously written about a wide range of tweaks to the CPF system, many of which would take effect this year in 2022.
Here are other important policies that the government announced previously, and would take effect this year.
A Fully-Vaccinated Workforce in the Workplace
As announced by the Ministry of Manpower, unvaccinated employees will no longer be allowed to return to the workplace from 15 January 2022, even with a negativeCOVID-19 test result.
Employers are encouraged to explore remote work arrangements for employees who remain unvaccinated, failing which a redeployment to a different role or unpaid leave could be explore, with retrenchment at last resort.
This is to keep the workplace safe, healthy and resilient amid a resurgence of cases due to community spread, imported cases, and the highly-contagious Omicron COVID-19 variant.
Raising of Retirement and Re-employment Ages
| Current | In 2022 | |
| Retirement Age | 62 | 63 |
| Re-Employment Age | 67 | 68 |
Singapore will raise the statutory retirement age to 63 in 2022 (from 62), and the re-employment age to 68 (from 67). This will take effect from 1 July 2022.
The higher retirement age will apply to workers born on or after 1 July 1960, while the higher re-employment age applies to those born on or after 1 July 1955.
This increase is a step towards Singapore’s roadmap to eventually increase the retirement age to 65 and the re-employment age to 70 by the year 2030. This was announced by Prime Minister Lee Hsien Loong in his National Day Rally 2019 speech, after the government accepted recommendations by the Tripartite Workgroup on Older Workers.
Raising of CPF Basic Retirement Sum and Basic Healthcare Sum
The Basic Retirement Sum (BRS) will be increased from $93,000 to $96,000 for members turning 55 in 2022. The increase is approximately 3% from the previous BRS to reflect long-term inflation and increase in cost of living.
From 2022, the Basic Healthcare Sum will be raised from $63,000 to $66,000 for CPF members under the age of 65. This figure is adjusted yearly to reflect the growth in MediSave use, and will remain fixed for each member once they reach the age of 65.
Raising of CPF Contribution Rates for Older Workers
From 1 January 2022, CPF contributions rates for workers aged above 55 to 70 will increase, in order to boost their retirement adequacy. This was initially planned for 1 January 2021, but was deferred by one year due to COVID-19.
To illustrate, the following table shows the increase in CPF contributions for workers earning at least $750 a month. Those earning monthly wages of more than $500 to $750 will see their employee contribution rates continue to be phased in.
The increase in CPF contributions would go fully to the employee’s CPF Special Account, and this amount will continue to be progressively increased over the next decade.
